Hindalco Industries Ltd.

Credit rating agency, CRISIL has downgraded its rating on the long-term bank facilities and debt programmes of Hindalco Industries to ‘AA/Stable’ from ‘AA+/Stable’. The rating on the company’s short-term debt and bank loan facilities has been reaffirmed at ‘A1+’.

The company’s debt to EBITDA, although currently high for the rating category, will gradually improve over the medium term driven by a steady ramp-up in its domestic greenfield capacities, access to captive Mahan coal block, and portfolio rationalization in Novelis with increased focus on its high margin automotive-business.

Hindalco Industries, the metals flagship company of the Aditya Birla Group, is an industry leader in aluminium and copper. The company’s aluminium units across the country encompass the entire gamut of operations from bauxite mining, alumina refining, aluminium smelting to downstream rolling, extrusions, foils and alloy wheels, along with captive power plants and coal mines.